How I Overcame the Challenge of Spending After Retirement

The FIRE Reddit community got into a healthy debate after a user posted about spending after retirement. The Redditor asked how retirees turn on the switch and go from saving to spending. The idea is that you save a lot of money while building up to your FIRE goals and then spend more money when you retire.

Some Redditors offered their advice on changing the habits, while others disagreed with the entire premise. The debate shows that different people have different goals and lifestyles. Hearing different perspectives can help you form an opinion and decide how you want to manage your money now and in the future.

Be Confident in Your Numbers

One commenter suggested that it gets easier to spend money in retirement when you are confident in your numbers and your plans. This individual emphasized having a healthy buffer where you don’t feel stressed about market drops.

If you regularly withdraw 4% or more from your portfolio each year to cover your expenses, you may have a lot of stressful moments when the market goes down. The stock market doesn’t go up forever, and the start of 2025 has reminded many people of that reality. If you spend as if the stock market will continue to rally, you can risk burning through all of your cash too early.

Don’t Change Your Spending

Some Redditors were on the opposite side of the camp, including the top commenter. This individual said that it’s not an attitude change. People spend money before they retire and will continue to do that when they retire.

Another person responded to the comment, saying that it doesn’t make sense for people to be more frugal during their earning years than during their retirement years. This individual spends money now in the same way that they will spend it in retirement.

Having consistent expenditures instead of a sharp increase in post-retirement spending can make it easier to predict how much you need in your portfolio to walk away from work. You should also have some fun expenses like vacations while you are working. That way, you won’t go crazy with the expenditures upon retiring.

Live Within Your Means

It’s easy to advocate for not changing your spending if you can still live within your means. Some Redditors in the FIRE community mention that they aren’t depriving themselves right now as they pursue retirement. However, they are living at or below their means (more often the latter).

If you are living below your means, it’s easier to spend money during retirement. Consumers can also establish how much money they need to retire if they live within their means and keep monthly expenses at a reasonable level.

The thought of switching from net savers to net spenders caused some people to panic. It can feel unnerving to make that type of shift. However, one Redditor explained in the comments that he talked with his wife about it. After many years of accumulating money, they were finally drawing down funds. The commenter explained that he acknowledged the situation, reviewed his finances, and gave himself a margin of error.

The Redditor did this with his wife. They discussed finances together, which is a valuable component of a strong marriage. Living within your means or below them makes it easier to spend during your retirement years. 

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